Calculator

Child education planner

Start with what the course costs today and how old your child is now. The calculator inflates that cost to the year the fees fall due and shows the monthly SIP it would take to get there at the return you assume.

Illustrative only — this is not a projection or a promise of returns. Every figure below is arithmetic applied to the rate of return you typed in. H2 Investment is not suggesting that rate, forecasting it, or promising it. Returns are market-linked, vary from year to year, and can be negative.

Your assumptions

Your child’s age now

In whole years.

Age the money is needed

The age at which the fees fall due — when the course starts. In whole years.

What it costs today

In rupees. Numbers only.

Assumed education inflation, % a year

How fast you assume the fees themselves rise. Education costs in India have historically risen faster than general prices, so this is often set above ordinary inflation.

Assumed return, % a year

Your assumption for an average annual return. Nobody can tell you the right number to put here.

Already saved for this (optional)

Anything you have set aside for this goal already. It is grown at the same assumed return and subtracted from what you still need. Leave it at 0 if nothing is earmarked yet.

What this is, and what it isn’t

This is arithmetic on the numbers you typed. It compounds them at the rate you chose and shows you the result. That is all it does.

It is an illustration, not a projection. It is not a forecast, not a recommendation, and not an offer. Nobody knows what any investment will return, so the rate you enter is an assumption you are making, not a rate anyone is offering you. Real returns arrive unevenly — good years, flat years and falling years, in an order nobody can predict — and that order matters as much as the average.

Use the output the way you’d use a rough estimate on the back of an envelope: to see whether the shape of a plan is roughly right, not to decide what a specific rupee amount will be worth on a specific date.

This shows the instalment the arithmetic needs, not an amount that will fund the course for certain. It is an illustration, not a projection or a promise. Re-run it as the fees, your savings and your assumptions change.

What this calculation assumes

The calculator inflates the fees to what they would cost in the year the course starts, subtracts the future value of anything already saved, and solves for the monthly SIP that would cover the rest at the rate you assume. Three assumptions sit behind that:

One rate, every month. The calculator applies the same return to every month of every year. Markets do not work that way. Two plans that both average 12% can end up far apart depending on which years were the bad ones.
The rate is yours, not ours. The return is an assumption you are making, not a rate anyone is offering you. Nobody knows what any investment will return, so run it at more than one rate and look at the spread.
Fees rise at the inflation you set. The result is only as good as the cost and the education-inflation figure you enter. Fee rises vary widely by institution and country; raise the inflation input if you want a more cautious illustration.

New to the idea behind this? Setting a financial goal walks through it in plain language.

Talk to us

If you’d rather go through your own numbers with a person than a form, that’s what we’re for. You’ll speak to Himani, who runs H2 — the same person every time.

Talk to us See how we get paid

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See all calculators. None of these ask for your name, your phone number or your PAN. Nothing you type is stored or sent anywhere. Use them as often as you like without hearing from us.